Saturday, December 17, 2016 / by Jason Huerkamp
Payment on Mortgage
This monthly amount will depend on the type of mortgage you have. Do explore your mortgage options carefully and perhaps lock in a fixed mortgage rate for a period of time so that there are no increases or surprises.
Home Owners Insurance
Home Owners Insurance is really important and the Lender will probably insist you have that prior to the closing on your new home. That would keep their investment in your property safe and protect you for any unforeseen damages. The Home Owners insurance also covers any claim against you should someone be injured on your property or as a result of an issue in your property. Your Home Owners Insurance gives you peace of mind.
Property Taxes are the fees levied by the local municipalities on your property which is then allocated to the maintenance and upkeep of roads, water systems, sewers, removing snow and then other general items that need to be paid for by your local municipality. Your Property Taxes are calculated on the assessed value of your home and are recalculated periodically to meet the needs of the locality.
Your Lender would probably be collecting your property taxes as part of your monthly mortgage payment and will make the annual payment on your behalf. Always check with the lender, it's a sizable amount to have to pay out if you have not budgeted for it.
- Natural Gas
Maintenance and upkeep of a property lie hand in hand with home ownership. You need to keep your home well maintained and functioning correctly in order for your investment to keep its value. If you let maintenance slide, it is often too costly and too difficult to catch up and that is how homes become derelict and lose value.
Here are some of the items that need to be maintained regularly.
- HVAC Heating and Cooling
- Hot Water Heater
- Pest Control
Every few years you do need to remodel slightly to keep your home value. Bathrooms and kitchens should be kept current and of course minor painting and colors need to be reviewed regularly. You can often use equity in your mortgage to do some remodeling, however if you include a remodeling budget annually for those upgrades, you can do them as you need to with money that you have access to immediately taking advantage of specials and bargains.
Major Upgrades and Improvements
When it comes to major improvements, like adding a room, you may want to consider whether your home still suits your needs and/or whether it may be time to upgrade or move. A great real estate agent will help you with a CMA and give you a clearer picture of your homes value and whether a major upgrade would be a good decision or a "time to move" decision instead.
Each year plan accordingly, set your funds aside and be on top of your finances. Know your financial goals and expenses and budget.
First Time Home Buyers
There is often more to owning a home than initially considered and a great real estate agent will educate you about the process prior to making that financial commitment. There is more to owning a home than initially considered
It is important to know that you can live within your budget and if you know that these are the financial obligations when owning a home you can take care to keep your finances in order and budget accordingly.